What is economic pressure?

Economic pressure occurs when society or country faces an undesirable economic period. For example, economic pressure may occur during a recession where the unemployment rate is higher than usual or after a period of cost increase. Companies respond to economic pressure in different ways, such as consumers of costs, less shopping or lending less money from financial institutions. The economic pressure is often followed by economic reform. First, the company will enter the period of surplus, known as the boom. During this time, the unemployment level is low and people have higher wages or more one -off income to be used for luxury,

a period of contraction, also known as recession, usually occurs after surplus. The recession period is often caused by an increase in unemployment rate. People are starting to lose their disposable income and spend less, which results in more businesses passing employees or completely closing the door. Recessions usually cause economic pressure in societynation. For example, people who lose their jobs hard to pay their accounts, cover insurance costs and provide needs such as food. Even people who maintain their work may feel pressure to reduce their expenditure for fear that the bad economy can affect their work in the future.

Generally speaking, consumers will become more cautious with their income at a time of economic pressure. Many consumers have reduced their basic needs and reduced or remove any excess expenses. Other consumers are delaying lending money that can try to repay in the future, such as personal loans or credit lines.

businesses also suffer from economic periods. When consumers start spending less, the company brings less income. Over time, this may result in closing companies that close retail places, release employees or submit bankruptcy.

In the past, the US government has created laws to try to alleviate economic pressure. For example, a social security system was created to help citizens who could no longer afford basic human needs. Other examples include legislation to stimulate job creation, tax reduction or offering discounts to taxpayers.